Efforts are being made in London, known as the financial hub of the Western world, for the development of the “digital pound” by the central bank. In the race among central banks for digital currency (CBDC) initiatives, the UK’s move stands out.
As digital currency (CBDC) becomes more prevalent, discussions continue regarding the risks related to personal freedoms and societal rights. Concerns are particularly raised about the potential of payment algorithms to restrict expenditures based on social credit scores.
The UK Central Bank’s “Digital Pound” Plan
The Bank of England (BoE) has announced its support for the digital currency “digital pound” in 2023. However, to use this digital currency, a “digital wallet” provided by a private company will be required.
Experts emphasize that algorithms will play a critical role in overseeing digital currency. It’s stated that algorithms can control expenditures and direct payment transactions, potentially leading to constraints on personal freedoms.
Digital Currency and Financial Structure
The “digital pound” is intended to serve as a payment system and will not yield interest. Experts point out that such digital currency doesn’t necessarily replace traditional currencies, but rather represents a significant shift in payment systems.
There are concerns about the potential limitations on the use of digital currency developed by central banks and the control of expenditures through algorithms. This situation could mean the control of society’s and individuals’ preferences.
The future of digital currency and the associated risks continue to be topics of discussion. Experts caution that such digital currencies could result in account freezing, expenditure restrictions, and threats to personal freedoms when necessary.